Recent tax reforms in Nigeria have introduced far-reaching changes that significantly affect how businesses structure transactions, assess compliance risks, and plan for long-term growth.
Key among these reforms are new and expanded provisions relating to Capital Gains Tax (CGT), Development Levy, progressive Personal Income Tax (PIT), Controlled Foreign Company (CFC) rules, and the recovery of input Value Added Tax (VAT).
Together, these developments signal a decisive shift towards a more robust, transparent, and equitable tax administration framework.
For businesses, the starting point must be a deliberate review of existing tax plans and internal compliance models. The reforms are not merely cosmetic; they recalibrate long-standing assumptions around tax exposure, reporting obligations, and group structures.
While the overarching intent of the new tax laws is to promote fairness and equity in the tax system, their practical effect varies across sectors and business models.
Importantly, the new regime offers opportunities for eligible taxpayers to benefit from innovative and clarifying provisions designed to enhance certainty and improve tax outcomes.
When properly understood and applied, these provisions can support efficient tax planning, reduce disputes with tax authorities, and align business operations with regulatory expectations. At the same time, certain aspects of the reforms introduce additional compliance layers and, in some cases, increased tax burdens that must be carefully evaluated and managed.
The implementation phase of the new tax Acts represents a critical milestone. Many of the amendments are clearly aimed at correcting perceived loopholes, ambiguities, and abuse encountered under the repealed tax laws. By addressing these “mischiefs,” the reforms seek to strengthen enforcement, curb avoidance practices, and ensure that tax liabilities more accurately reflect economic substance.
For business leaders, taxpayers, and tax administrators alike, preparedness is essential. Understanding the policy direction, anticipating enforcement priorities, and adopting effective self-assessment frameworks will be central to navigating the new tax landscape successfully.
Early engagement, proactive restructuring where necessary, and sound professional advice will be key differentiators.
At LawHaven Solicitors & Advocates, we advise clients on the practical implications of Nigeria’s evolving tax framework, offering strategic guidance on compliance, risk management, and tax efficiency. Our focus is not only on helping businesses meet their statutory obligations, but also on positioning them to operate confidently and competitively within the reformed tax environment.